In new countries like the United States, Australia and Canada, vast tracts of land are lying vacant and uncultivated. They are easily available at cheap rates but labour is not available to cultivate them. The farmers bring more and more land under cultivation in order to increase production. This is extensive cultivation.

2. Intensive Cultivation:

When more and more units of labour and capital are applied on the same land to increase production, it is called intensive cultivation. This method of cultivation is adopted in those countries where land is scarce and its area is limited. This method of cultivation is used in old countries of Europe like England, Germany, France, etc.

It is to be noted that the method of extensive cultivation does not refer to a large land area and of intensive cultivation to a small land area. In fact, these are the two methods of cultivation. In extensive cultivation, the farmer uses old methods of cultivation. On the other hand, in intensive cultivation, he uses improved methods of cultivation like better seeds, fertilisers, timely crop rotation and irrigation, modern tools and implements, etc.

For example, in such advanced countries as the U.S.A. Australia and Canada even when land is in abundance, the methods of intensive cultivation are used. On the other hand, in backward countries of Africa and Asia extensive methods of cultivation are used because they do not use modern techniques of production.